Lockdown to delay several oil, gas projects

Low oil and gas prices, lockdown and mobility restriction across several countries will delay several oil and gas projects from complex deep-sea projects that depend on men and material from across the globe to refinery expansion and pipe-laying, executives and analysts said.

The oil industry is under twin assault from the demand destruction caused by Covid-19 and a price war between key global producers that has brought about a record quick drop in prices. Lockdown and mobility restrictions have induced economic uncertainty and are making it harder for executives to manage projects.

Complex upstream projects are likely to be hit the hardest as they depend on an intricate global supply chain of expertise and equipment, executives said, adding that this would result in many exploration, development, and enhanced oil recovery projects stretching beyond original schedules. This will definitely delay production from many new fields, they said.

Vedanta said it has sought extension of exploration timelines for its oil blocks won in recent auction rounds primarily due to the lockdown delaying seismic surveys.

Find the latest energy news, views, and updates from all top sources for the Indian Energy industry. Get the latest Energy news from the top sources for the Indian Energy Industry. Get the latest news and updates from the Indian energy and power sector and Power Sector in India, Power Industry, India Power Companies, Power Generation, Oil & Gas, Railways, Infrastructure and more. Get Latest News on Energy in India, Coverages of Renewable Energy, Updates on Energy Industry Information and Many More. Latest India Energy News, Power sector, Energy Company News, Oil & Natural Gas, Coal, Nuclear Power News Updates & more on Energyinfrapost.com.